Russia reinstates LPG export duty for August

The Russian government has introduced a $9.0/t duty on LPG exports for August, a finance ministry official said. The country most recently levied a duty on propane and butane exports in April, at $35.4/t.

The rate was set at zero in the interim because of relatively low LPG prices on the Belarus-Poland border, the destination for Russian rail exports. The effect of the duty on Russian LPG shipments is likely to be negligible as the rate is low, regional traders said.

"The volume of LPG exports from Russia in August will mainly depend on the situation on European trading platforms and on the domestic market of Russia," said an official from a large Russian producer.

Moscow has also put in place a $7.2/t tariff on exports of ethane, butane and isobutane — with a purity of 95pc or more. The last time this was levied it was $28.30/t in April. The duty on ethane, butane and isobutane in 2021 is 80pc of the duty rate on propane-butane mix, and in 2022 this level will increase to 90pc.

Svetlana Novolodskaya